CAPITALIZATION Definition

Bookmark and Share

CAPITALIZATION is the statement of capital within the firm - either in the form of money, common stock, long-term debt, or in some combination of all three. It is possible to have too much capital (in which case the firm is overcapitalized) or too little capital (in which case the firm is undercapitalized).

Learn new Accounting Terms

SLA see Service Level Agreement.

ENTITY THEORY is where a legal entity is regarded as having a separate existence from the owners. The financial statements are prepared from the perspective of the entity, not its owners. See PROPRIETARY THEORY.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.